v3.26.3
SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
Prior to the third quarter of 2026, the Company had one operating and reportable segment, Bitcoin Mining. In connection with the commencement of the initial phase of the Black Pearl Facility Lease in August 2026, the CODM began regularly reviewing discrete financial information for the Company’s HPC leasing activities to assess performance and allocate resources. As a result, beginning in the third quarter of 2026, the Company has two operating segments, Bitcoin Mining, which through operations produces bitcoin to generate revenue, and HPC Leasing through which data centers are constructed and leased to tenants for HPC. The CODM for the Company consists of the CEO and CFO. The CODM reviews the performance of the Company’s operating segments primarily based on operating income when deciding on allocating resources. As a result, the Company retrospectively recast prior period results by segment to conform to the current period presentation. Asset information by reportable segment is not regularly provided to the CODM for resource allocations and, accordingly, segment asset information is not presented.
The Company’s revenues, significant expenses, operating income, and net income by segment for the three months ended September 30, 2026, and 2025 are summarized in the following table (in thousands):
Three Months Ended September 30, 2026
Bitcoin MiningHPC LeasingConsolidated
Revenue
$20,849 $5,852 $26,701 
Costs and operating (expenses) income
Cost of revenue$(14,638)$(726)$(15,364)
Depreciation and amortization(16,415)(2,406)(18,821)
Change in fair value of power purchase agreement(13,910)— (13,910)
Equity in losses of equity investees— — — 
Unrealized gains (losses) on fair value of bitcoin12,394 — 12,394 
Realized gains (losses) on sale of bitcoin481 — 481 
Direct operating expenses(1)
— (2,009)(2,009)
Other segment items(2)
4,257 (2,739)1,518 
Segment operating income (loss)$(6,982)$(2,028)$(9,010)
Other operating items(3)
(62,905)
Operating (loss) income$(71,915)
Interest income$32,684 
Interest expense(58,994)
Other non-operating items(4)
129,767 
Income before taxes
31,542 
Total income tax benefit
54 
Net income
$31,596 
Three Months Ended September 30, 2025
Bitcoin MiningHPC LeasingConsolidated
Revenue
$71,707 $— $71,707 
Costs and operating (expenses) income
Cost of revenue$(26,733)$— $(26,733)
Depreciation and amortization(59,549)— (59,549)
Change in fair value of power purchase agreement(9,030)— (9,030)
Equity in losses of equity investees(1,479)— (1,479)
Unrealized gains (losses) on fair value of bitcoin108 — 108 
Realized gains (losses) on sale of bitcoin7,535 — 7,535 
Direct operating expenses(1)
— — — 
Other segment items(2)
2,443 (6)2,437 
Segment operating income (loss)$(14,998)$(6)$(15,004)
Other operating items(3)
(22,613)
Operating (loss) income$(37,617)
Interest income$457 
Interest expense(1,286)
Other non-operating items(4)
34,860 
Loss before taxes
(3,586)
Total income tax benefit
303 
Net loss
$(3,283)
(1) Direct operating expenses consist of site-specific general and administrative expenses, primarily insurance, property taxes and site-level legal and professional fees, at operating HPC sites.
(2) Other segment items consist of power sales and other operating expenses, including non-capitalized project costs at HPC data center sites, loss on disposal of assets and fixed asset write-downs.
(3) Other operating items include compensation and benefits and general and administrative expenses not recorded at operating HPC sites (including those of HPC sites not yet commenced), which are not allocated to segments.
(4) Other non-operating items consist of the change in fair value of warrant liability and other income (expense), net.
The Company’s revenues, significant expenses, operating income, and net income by segment for the nine months ended September 30, 2026, and 2025 are summarized in the following table (in thousands):
Nine Months Ended September 30, 2026
Bitcoin MiningHPC LeasingConsolidated
Revenue
$80,524 $5,852 $86,376 
Costs and operating (expenses) income
Cost of revenue$(46,487)$(1,629)$(48,116)
Depreciation and amortization(52,678)(4,522)(57,200)
Change in fair value of power purchase agreement(48,040)— (48,040)
Equity in losses of equity investees(1,601)— (1,601)
Unrealized gains (losses) on fair value of bitcoin33,055 — 33,055 
Realized gains (losses) on sale of bitcoin(47,251)— (47,251)
Direct operating expenses(1)
— (2,017)(2,017)
Other segment items(2)
(9,096)(2,651)(11,747)
Segment operating loss
$(91,574)$(4,967)$(96,541)
Other operating items(3)
(168,479)
Operating loss
$(265,020)
Interest income$100,135 
Interest expense(184,888)
Other non-operating items(4)
244 
Loss before taxes
(349,529)
Total income tax expense
(720)
Net loss
$(350,249)
Nine Months Ended September 30, 2025
Bitcoin MiningHPC LeasingConsolidated
Revenue
$164,231 $— $164,231 
Costs and operating (expenses) income
Cost of revenue$(56,957)$— $(56,957)
Depreciation and amortization(147,102)— (147,102)
Change in fair value of power purchase agreement(17,180)— (17,180)
Equity in losses of equity investees(8,472)— (8,472)
Unrealized gains (losses) on fair value of bitcoin(2,927)— (2,927)
Realized gains (losses) on sale of bitcoin16,092 — 16,092 
Direct operating expenses(1)
— — — 
Other segment items(2)
4,290 (2,319)1,971 
Segment operating income (loss)$(48,025)$(2,319)$(50,344)
Other operating items(3)
(70,604)
Operating loss
$(120,948)
Interest income943 
Interest expense(3,200)
Other non-operating items(4)
35,924 
Loss before taxes
(87,281)
Total income tax expense
(758)
Net loss
$(88,039)
(1) Direct operating expenses consist of site-specific general and administrative expenses, primarily insurance, property taxes and site-level legal and professional fees, at operating HPC sites.
(2) Other segment items consist of power sales and other operating expenses, including non-capitalized project costs at HPC data center sites, loss on disposal of assets and fixed asset write-downs.
(3) Other operating items include compensation and benefits and general and administrative expenses not recorded at operating HPC sites (including those of HPC sites not yet commenced), which are not allocated to segments.
(4) Other non-operating items consist of the change in fair value of warrant liability and other income (expense), net.